Experts concerned at currency depreciation
If money continues to be transferred to Azerbaijan`s
currency market from the State Oil Fund, the body that holds the
country`s revenues from energy exports, Azerbaijan`s currency
reserves may be depleted in two years, pundits have warned.
Experts of the Public Association for Support for Economic Initiatives expressed concern at the growing depreciation of the national currency, the manat, saying that the government is continuing the policy of protecting the manat by such transfers. This year a total of $6.1 billion was transferred from the oil fund. Analysts think that the government may be hoping that the crude price will rise again, which will help Azerbaijan overcome the consequences of the ongoing crisis.
Experts noted that this policy would be continued until the summer, and if the oil price does not rise by then, the transfers will be stopped, which will make depreciation of the manat and any subsequent inflation inevitable.
Experts of the Public Association for Support for Economic Initiatives expressed concern at the growing depreciation of the national currency, the manat, saying that the government is continuing the policy of protecting the manat by such transfers. This year a total of $6.1 billion was transferred from the oil fund. Analysts think that the government may be hoping that the crude price will rise again, which will help Azerbaijan overcome the consequences of the ongoing crisis.
Experts noted that this policy would be continued until the summer, and if the oil price does not rise by then, the transfers will be stopped, which will make depreciation of the manat and any subsequent inflation inevitable.
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